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Thursday, October 3, 2024

Does Your Car Insurance History Affect Your Auto Insurance Quote?

Every driver yearns to save as much money as possible on their auto insurance policy. And they’re not to blame considering the sharply increasing costs of car insurance and fuel worldwide is making it difficult to drive our cars. While premiums are on the rise for a lot of drivers, it doesn’t mean you should be comfortable.

In this modern day and age, there are numerous things you can do to cut costs on your policy. And one of the best ways to ensure you get cheap car insurance quotes online is to shop around and compare quotes from 3-4 different carriers. While it might sound stressful, the money-saving benefits that follow are worth everything.

You probably already know that different factors come into play when determining the quote you get from an auto insurer. One such factor worth looking into before comparing free car insurance quotes is your car insurance history. Easily ignorable, your auto insurance history plays a key factor in determining your car insurance quote.

But how does this come into effect in the first place? For a start, most auto carriers will check whether or not your car insurance has lapsed. Drivers who have had an insurance lapse, even if they don’t own a vehicle, may be classified as high-risk. The good news is opting for a non-owner car insurance policy can help you avoid a gap in coverage.

It doesn’t end with that since some carriers also factor in the duration you’ve been with your last insurer. Many carriers offer a loyalty discount, but sticking with the same insurer without shopping around also has its cons.

Some auto insurance agencies use data algorithms to determine whether a loyal client will compare rates with other agencies. If they don’t think you have what it takes to shop around, rest in knowing they may raise your rates. This is called price optimization.

Ensure you look into how your car insurance history impacts your coverage before getting and comparing free car insurance quotes online. That way, you can save yourself a couple of bucks on the coverage.

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